rose Natural gas prices In Europe, by 5.6%, as cold weather is expected to start eroding gas inventories, in light of the occurrence of outages at some major plants today, Tuesday.
Weather is expected to be “unusually cold” across the northern part of the continent starting next week, forecast firm Maxar said in a report, while its forecast for early December has been revised downwards.
An increase in the cold rate will lead to an increase in demand for Gas for the purpose of heating.
Storage sites in the region are still 94% full according to Gas Infrastructure Europe, following massive efforts to replenish supplies through LNG imports and the subsequent start of the winter heating season.
The extra volumes act as a buffer against a drop in temperature, but retailers are watching the pace of inventory reduction closely.
Alpha Energy analysts said in a research note that gas prices rebounded early Tuesday on inventory drawdowns along with lower wind power generation during the week. Separately, there are also process issues at Troll camp in Norway and Barrow North terminal in the UK, according to disruption notices.
Gas prices in Europe are poised for weekly gains amid the cold
